if the builder fails to provide the conveyance certification for four months after handing over possession, residents can get a deemed certificate from the local district deputy registrar instead.

People who want to sell their flats no longer need a no-objection certificate from the builder, they can thus save up to R1000 psf

Home owners can rest easy thanks to the state housing department’s new plan announced on September 26, according to which, if the builder fails to provide the conveyance certification for four months after handing over possession, residents can get a deemed certificate from the local district deputy registrar instead.
The conveyance deed is a document given by the builder or the owner of land to transfer the ownership of land to housing society members. Builders often avoid giving this so they can continue to enjoy ownership rights over the land.
Not having a conveyance certificate becomes troublesome if someone wants to sell a flat and transfer the ownership title to the new buyer. Until last month, residents had to obtain a no objection certificate (NOC) from the builder to sell a flat, for which builders charged an exorbitant amount, ranging from R500 psf to R1,000 psf, in the name of transfer fees.

CASE IN POINT

Sandeep Kulkarni (name changed on request) has been running around for seven years to get a conveyance certificate for a flat he bought in Wagle Estate, Thane. He approached the concerned government authorities, filed complaints, and even consulted lawyers to sort out this problem, but to no avail.
“There are 70 flat owners who have been repeatedly asking for the document, but haven’t got it yet. Recently, the builder, Ashwin Vesovada, has promised to give the conveyance in two months, but there is no assurance,” says Kulkarni.

 

CORRECTIVE MEASURES

The state housing department has asked the Inspector General of Registration and Stamps, the City and Industrial Corporation (Cidco) not to demand NOCs from flat owners and housing societies.

According to the Maharashtra Ownership flat Act 1963, or MOFA rules 1964, it is illegal to collect money in the name of NOC from the flat owners.
After receiving numerous complaints about builders taking money from people in the name of NOCs, the department decided to intervene to resolve the problem, says Shrikant Pulkundwar, joint secretary, housing department, Maharashtra government. In case, a registrar or any other government office demands an NOC from a builder, people should immediately inform the housing department, he adds.

PROBLEMS ADDRESSED BY THE NEW RULE

UNTIL NOW,
you had to get an NOC from builders to resell or transfer your flat if you did not have a conveyance deed, but now you can take a deemed certificate from the local district deputy registrar and sell it.

HOUSING SOCIETIES

that wanted to go under redevelopment also had to obtain a no-objection certificate from the builder after paying a huge amount if they did not have the conveyance deed of the land. This is no longer the case.

expert speak

“Builders have made a lot of money by not giving the conveyance certificate. The new plan will regulate it, and will give respite to flat owners.” RAMESH PRABHU, chairman of Maharashtra Societies Welfare Association (MSWA)

“The government has only addressed the problems faced by people after the building is fully constructed. There must be a provision to cover under-construction flats also, as those who want to sell their flats during this period also get exploited by developers.” ANIL HARISH, real estate lawyer

“Until now, buying and selling flats was getting unnecessarily delayed for months because of not having an NOC. This decision will now save time because you will not have to run around for the conveyance certificate.” PARAS GUNDECHA, president, MCHICREDAI

“The situation is worse in Navi Mumbai where the City and Industrial Development Coorporation (CIDCO) has been collecting money from flat owners, not allotting conveyance certificate to housing societies, and in many cases, not even letting flat owners form a society.” DR SHRIKANT PULKUNDWAR, joint secretary, housing department, Maharashtra government

PROCEDURE TO GET DEEMED CONVEYANCE FROM DEPUTY DISTRICT REGISTRAR